Coronavirus: Stocks to watch in Lockdown 2

Lockdown is back, so we've compiled our list of lockdown stocks to watch.

Boris Johnson’s announcement on Halloween was anything but unprecedented, given the leaks to the media earlier in the week. From 5 November, England went into another month-long lockdown to end on 2 December. When this happened back in March, we saw a global stock market crash which started the COVID-19 recession.

Will this lockdown, which is creatively being called “Lockdown 2”, cause another crash?

It’s unlikely that Lockdown 2 is going to have the same impact on the stock market that it had back in March, given that this time it’s expected.

However, if the first lockdown tells us anything, it’s that stocks that are likely to do well are those that offer value to people in lockdown. We were all using Zoom 20 times a day, favouring comfy clothes bought from boohoo and keeping fit with exercise bikes and treadmills bought on Amazon (did anyone keep that up?).

Without much else to do, especially with the weather getting colder, it’s likely that we’ll stick to the same habits this time around. “Alexa, add yeast and bread flour to my shopping list.”

So, without further ado, let’s look at some lockdown stocks to watch.

Online clothing retailers

The last lockdown saw an influx of people buying nice tops to look smart in Zoom calls (which were, undoubtedly, paired with some comfy pyjama bottoms). We should probably have enough to tide us over, but with the onset of cold weather, it’s time to stock up on jumpers and woolly tights.

With the closure of non-essential shops, this could be a big win for online clothing retailers like ASOS and boohoo, making both of these lockdown stocks to watch.

Food retailers

Essential shops like supermarkets are allowed to remain open during the second lockdown. After all, where else will we stock up on all that loo roll? These retailers have majorly upped their delivery slots since coronavirus came about too.

This could see a shift in shopping behaviour. If it’s got a delivery slot available, you can easily go with a supermarket you wouldn’t usually visit. What might be a longer drive or walk when not in lockdown is nothing more than a new tab during lockdown.

This makes companies like Tesco, Ocado and Sainsbury’s some lockdown stocks to watch.

Food delivery companies

With many fast food outlets having to become delivery-only from Thursday, it’s likely that companies like Just Eat and Deliveroo will see another increase in customers during Lockdown 2. It’s hungry business sitting around doing nothing all day.

The good news is that companies are in a much better position this time around, so it’s unlikely we’ll see McDonalds or KFC closing their doors during this lockdown. We’re all pretty versed in ordering ourselves a takeaway and having a glass or two of wine instead of heading out for a meal.

Pet shops and supply stores

The last lockdown saw lots of people adopting pets to keep them company during lockdown. With the weather keeping you inside more, there’s a chance this could happen again.

The week of 16 March saw 121% more dogs adopted from Battersea than the week before, and 33% more cats.

This means that people are spending more money on pet supplies like beds, food, toys and even cat prosecco. This has helped companies like Pets at Home. And don’t forget that Christmas is coming – so all of these new pet owners will be filling stockings for their new four-legged friends.

But remember: a pet is for life, not just for lockdown.

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